Many of us are hearing about payment protection insurance because there are cases of where it has been miss sold. However, you should find out all about it, before you decide whether it is the right thing for you. You should try not to be influenced by salespeople who will make it sound like it is essential, but also not be put off by the negative publicity.
Payment protection insurance will ensure that if you are in the situation where you cannot afford to pay back your mortgage, the insurance will pay it for you. The terms of each insurance will differ and there may be only certain circumstances when it pays out. It could be if you are out of work or unwell and unable to work, but there may be certain circumstances which are exempt. This is why it is important to look in to it carefully.
Like all insurances, it is a gamble. You will not know whether you will ever need to use the insurance. Hopefully, you will remain fit and healthy and in full time employment and so able to pay your mortgage. However, we cannot predict the future and have no way of telling what might happen. If you are made redundant or cannot work, then there is a chance that your house will be repossessed by your lender if you cannot keep up the repayments. They do tend to be quite generous in negotiating a new payment deal for you, to help you while your situation is difficult because they do not want to repossess. However, this agreement could mean that things are more expensive or complicated in the long term. This is why some people decide to take out the insurance.
If there is only one person responsible for paying the mortgage then it could be an idea to be cautious and consider the insurance. If there are two people working and paying towards it, then there may not be such a need to worry about it. You need to consider your own situation and think about what will be the best for you.